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Ethics

Disciplinary Matters

Where feasible, disciplinary articles are periodically removed from this site in accordance with the following guidelines:

  • Terminations generally remain on the Web site for a maximum of seven years. If the member has his/her membership reinstated, their article will remain for a minimum of five years or the date of reinstatement, whichever is longer.
  • Suspensions will generally be removed from the Web site one year after the member’s suspension period has ended. Suspensions coincident with the state boards of accountancy will generally be removed when the member has sent notification that their suspension has been lifted by the state board. However, all suspensions will remain on the Web site for a minimum of one year.
  • Admonishments will generally be removed from the Web site one year after the effective date of admonishment.
 

    MICHAEL S. GUARNIERI, White Plains, N.Y., entered into a settlement agreement under the Joint Ethics Enforcement Program, effective Sept. 11, 2019, as a result of an investigation of alleged violations of the NYSSCPA Code of Professional Conduct. Information came to the attention of the Ethics Charging Authority (ECA) regarding a potential disciplinary matter, with respect to Guarnieri’s performance of professional services on the audit of the financial statements of an employee benefit plan as of and for the year ended Dec. 31, 2015. Based on a review of the information provided, including relevant documents submitted by Guarnieri to support his responses, there appeared to be prima facie evidence of violations of 1.310.001, Compliance with Standards Rule, and 1.320.001, Accounting Principles Rule. Without admitting or denying the alleged violations, Guarnieri agreed to forgo any further investigation of the matter by the ECA, waived his rights to a hearing, and agreed to his suspension from membership in the NYSSCPA for a period of two years.

    In accordance with the directives, as outlined in the settlement agreement, Guarnieri agrees to complete 51.5 hours of specified CPE within 18 months of the effective date of the agreement. He agrees to hire an outside party to perform a preissuance review of the reports, financial statements and working papers on all audits, including employee benefit plan audits, performed by him for one year from the date a reviewer has been approved or until completion of the CPE, if later. He agrees to inform the ECA of any changes in the composition of his practice, and if he has not performed any audits, including employee benefit plan audits, during the specified period, he may be required to attest every six months for three years as to the nature of his practice. If he returns to performing such engagements during the three-year attestation period, he must inform the ECA of the change and undergo the required preissuance reviews.

    Six months after completion of the preissuance reviews, he must submit a list of the highest level of engagements (audits, reviews and compilations with note disclosures) that he performed in the six-month period following the date he completed the preissuance reviews. One engagement will be selected for review. If he has not performed any audits, reviews or compilations with note disclosures, he must inform the ECA of the change. The ECA may require that he attest every six months for three years as to the nature of his practice, and if he returns to performing such work during the period of attestation, the ECA will select a suitable work product for review.

    Guarnieri will be prohibited from serving on any ethics or peer review committees of the NYSSCPA; performing peer reviews; or teaching CPE courses in the areas of accounting, auditing and employee benefit plans, until all directives in the settlement agreement have been met. Compliance with the terms of the settlement agreement will be monitored, and if noncompliance is found, an investigation will be initiated. (Published November/December 2019)


    MITCHELL L. KLEIN, New City, N.Y., had his membership in the NYSSCPA terminated, effective Sept.12, 2019, as a result of a decision by a hearing panel of the Joint Trial Board. Klein was found guilty of violating NYSSCPA bylaws Article XII–Professional Conduct and Disciplinary Proceedings, Section 12. Failure to Cooperate or Comply. Klein failed to cooperate with the Ethics Charging Authority in its investigation of his professional conduct by not responding to interrogatories and the request for documents.  (Published November/December 2019)


    RICHARD J. GIRASOLE, Brooklyn, N.Y., was suspended from membership for two years, effective June 13, 2018, under the provisions of NYSSCPA bylaws Article XII–Professional Conduct and Disciplinary Proceedings, Section 5. Automatic Discipline. The action was based on the Public Company Accounting Oversight Board’s (PCAOB) Release No. 105-2018-012. Through an “Offer of Settlement,” the PCAOB barred Girasole from being an associated person of a registered public accounting firm, based on violations of PCAOB rules and auditing standards concerning the audit of the financial statements of a broker-dealer. Girasole failed to plan the audit, failed to obtain sufficient appropriate audit evidence, and failed to exercise due professional care and professional skepticism in connection with the audit. He did not remain independent of the firm’s audit client throughout the audit and professional engagement period. Girasole failed to have an engagement quality review performed by a partner or another individual in an equivalent position before the firm issued its audit opinion and attestation report, and failed to disclose certain reportable events to the board, as required by PCAOB rules. He has the right to file a petition for reinstatement after two years from the date of the PCAOB’s order. Details regarding the PCAOB’s order can be found here.
    (Published September/October 2019)


    RICHARD J. BERTUGLIA, Dix Hills, N.Y., was disciplined under the provisions of NYSSCPA bylaws Article XII–Professional Conduct and Disciplinary Proceedings, Section 5. Automatic Discipline. Bertuglia’s NYSSCPA membership was suspended for two years, effective Oct. 12, 2018, in connection with the disciplinary action taken by the Securities and Exchange Commission (SEC). Through an “Offer of Settlement,” in which he neither admitted nor denied the findings, the SEC denied Bertuglia the privilege of appearing or practicing before the SEC as an accountant, with the right to apply for reinstatement after three years from the effective date of the SEC’s order. This action is based on the SEC’s Order Instituting Public Administrative Proceedings Pursuant to Section 4C of the Securities Exchange Act of 1934 and Rule 102(e) of the SEC’s Rules of Practice, Making Findings, and Imposing Remedial Sanctions. Based on the SEC’s findings, Bertuglia engaged in improper professional conduct by violating auditing standards established by the Public Company Accounting Oversight Board (PCAOB). As the engagement partner responsible for the audits of the financial statements, Bertuglia failed to properly exercise due professional care by not supervising the engagement team. Details regarding the SEC’s order can be found here. (Published September/October 2019)


    STEVEN ROSENFELD, Woodbury, N.Y., was suspended from membership for two years, effective Nov. 20, 2018, under the provisions of NYSSCPA bylaws Article XII–Professional Conduct and Disciplinary Proceedings, Section 5. Automatic Discipline. The action was based on the disciplinary action taken by the New York State Education Department (NYSED), Office of Professional Discipline, State Board for Public Accountancy. Rosenfeld submitted an Application for Consent Order, which was granted by vote of the Board of Regents on Nov. 6, 2018. In said application, Rosenfeld admitted guilt to one specification of professional misconduct (audit procedural errors committed during the audit of an employee benefit plan for the year ended June 30, 2015). He was placed on partial actual suspension in the area of auditing, indefinitely, until successful completion of a plan of coursework and training in auditing, and was fined $2,500. Upon written proof of successful completion of the coursework and training, the partial actual suspension will be terminated by the NYSED. Rosenfeld will then be placed on probation for two years. (Published September/October 2019)


    JOSEPH C. MACINA, Bay Shore, N.Y., was disciplined under the provisions of NYSSCPA bylaws Article XII–Professional Conduct and Disciplinary Proceedings, Section 5. Automatic Discipline. Macina’s NYSSCPA membership was suspended for three years, effective Dec. 21, 2018, in connection with the disciplinary action taken by the Securities and Exchange Commission (SEC). Through an “Offer of Settlement,” in which he neither admitted nor denied the findings, the SEC denied Macina the privilege of appearing or practicing before the SEC as an accountant, with the right to submit an application for reinstatement after three years from the effective date of the SEC’s order. This action is based on the SEC’s Order Instituting Public Administrative and Cease-and-Desist Proceedings Pursuant to Section 4C and 21C of the Securities Exchange Act of 1934 and Rule 102(e) of the Commission’s Rules of Practice, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order. According to the SEC’s findings, Macina engaged in improper professional conduct by violating auditing standards established by the Public Company Accounting Oversight Board (PCAOB). As the engagement partner on the audit of a temporary staffing services company, for the fiscal year beginning on Jan. 3, 2014, Macina approved the issuance of the company’s audit report, which contained an unqualified opinion that was included in the company’s 2013 Form 10-K, filed with the SEC on July 1, 2014. The report was inaccurate in that it stated the audit was conducted in accordance with the standards of the PCAOB, when it was not. Details regarding the SEC’s order can be found here.
    (Published September/October 2019)

    MITCHELL J. RUBIN, Chappaqua, N.Y., was disciplined under the provisions of NYSSCPA bylaws Article XII–Professional Conduct and Disciplinary Proceedings, Section 5. Automatic Discipline. Rubin’s NYSSCPA membership was terminated, effective May 7, 2019, in connection with the disciplinary action taken by the Securities and Exchange Commission (SEC). Through an “Offer of Settlement,” in which he neither admitted nor denied the findings, the SEC denied Rubin the privilege of appearing or practicing before the SEC as an accountant. This action is based on the SEC’s Order Instituting Public Administrative and Cease-and-Desist Proceedings Pursuant to Section 4C and 21C of the Securities Exchange Act of 1934 and Rule 102(e) of the Commission’s Rules of Practice, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order. According to the SEC’s findings, Rubin engaged in improper professional conduct by violating auditing standards established by the Public Company Accounting Oversight Board (PCAOB). He was the engagement partner during the audits of a temporary staffing services company from 2009 through 2013. During the audits of the company’s 2012 financial statements, Rubin and the engagement quality reviewer prepared and authorized issuance of the audit reports filed with the SEC that falsely stated that they had conducted the December 2012 audit in accordance with PCAOB standards, when, in fact, the audit was so deficient that it amounted to no audit at all.Details regarding the SEC’s order can be found here. (Published September/October 2019)

    ALLEN F. MAIKELS, Albany, N.Y., was terminated from membership, effective June 8, 2019, as a result of a decision of a hearing panel of the Joint Trial Board. Maikels was found guilty of violating NYSSCPA bylaws Article XII–Professional Conduct and Disciplinary Proceedings, Section 12. Failure to Cooperate or Comply. Maikels failed to cooperate with the Ethics Charging Authority in its investigation of his professional conduct by not responding to interrogatories and the request for documents. (Published September/October 2019)

    ANTHONY V. BRUNO, Red Bank, N.J., was suspended from membership for two years, effective Nov. 28, 2017, under the provisions of NYSSCPA bylaws Article XII–Professional Conduct and Disciplinary Proceedings, Section 5. Automatic Discipline. The action was based on the Public Company Accounting Oversight Board’s (PCAOB) findings. Through an “Offer of Settlement,” the PCAOB barred Bruno from being an associated person of a registered public accounting firm, based on violations of PCAOB rules and auditing standards, in connection with his failure, as the engagement partner, to comply with auditor independence requirements. Bruno authorized the issuance of a broker-dealer’s audit report, knowing that the firm had also prepared the broker-dealer’s financial statements. Due to Bruno’s actions, the firm violated the PCAOB rule on auditor independence by failing to satisfy the independence criteria applicable to the engagement, including the criteria established by the U.S. Securities and Exchange Commission applicable to audits of brokers and dealers. With respect to audit violations, Bruno failed to exercise due professional care and professional skepticism, and to obtain sufficient appropriate audit evidence to support the firm’s audit opinion on the broker-dealer’s financial statements and supporting schedule; he also stated, among other things, that the firm’s audit was conducted in accordance with PCAOB standards. Bruno has the right to file a petition for reinstatement after two years from the date of the PCAOB’s order. Further details regarding the PCAOB’s order can be found here.
    (Published July/August 2019)


    CHARLES E. LAWRENCE III, Fairfield, Conn., had his NYSSCPA membership terminated under the provisions of NYSSCPA bylaws Article XII–Professional Conduct and Disciplinary Proceedings, Section 2. Criminal Conviction of Member, and Section 5. Automatic Discipline, effective April 23, 2019. The action was based on a final judgment of conviction for a crime punishable by imprisonment for more than one year. Lawrence was found guilty of violating Connecticut Statutes 53a-71(a)(1), Attempt to Commit Sex 2-Victim 13-15Y, ACTR>3Y Older; 53-21(a)(2), Attempt to Commit Illegal Sexual Contact-Victim<Age 16; and 53a-90a(a), Enticing a Minor by Computer.
    (Published July/August 2019)


    HONGLING ZHANG, Flushing, N.Y., was suspended from membership for two years, effective Oct. 2, 2018, under the provisions of NYSSCPA bylaws Article XII–Professional Conduct and Disciplinary Proceedings, Section 5. Automatic Discipline. The action was based on the Public Company Accounting Oversight Board’s (PCAOB) Release No. 105-2018-019, “Order Instituting Disciplinary Proceedings, Making Findings, and Imposing Sanctions,” In the Matter of Zhang Hongling CPA, P.C. and Hongling Zhang, CPA. Through an “Offer of Settlement,” in which she neither admitted nor denied the findings, the PCAOB barred Zhang from being an associated person of a registered public accounting firm, as a result of violations of the PCAOB’s rules and standards. During the subject audit, Zhang failed to obtain sufficient appropriate audit evidence and to exercise due professional care and professional skepticism. In particular, Zhang failed to perform any procedures to test the occurrence and valuation of certain related-party transactions that the company asserted had occurred during the year under audit. Zhang may file a petition for PCAOB consent to associate with a registered public accounting firm after two years from the date of the PCAOB’s order. Prior to filing a petition, Zhang will be required to complete fifty (50) hours of continuing professional education in the subjects that are directly related to the audits of issuer financial statements under PCAOB standards. Details regarding the PCAOB’s Order can be found here. (Published May/June 2019)


    JOHN W. GREEN, Tucson, Ariz., was disciplined under the provisions of NYSSCPA bylaws Article XII–Professional Conduct and Disciplinary Proceedings, Section 5. Automatic Discipline. Green’s NYSSCPA membership was suspended for one year, effective Oct. 12, 2018, in connection with the disciplinary action taken by the Securities and Exchange Commission (SEC). Through an “Offer of Settlement,” in which he neither admitted nor denied the findings, the SEC denied Green the privilege of appearing or practicing before the SEC as an accountant, with the right to apply for reinstatement after one year from the effective date of the SEC’s order. This action is based on the SEC’s “Order Instituting Public Administrative Proceedings Pursuant to Section 4C of the Securities Exchange Act of 1934 and Rule 102(e) of the Commission’s Rules of Practice, Making Findings, and Imposing Remedial Sanctions.” Based on the SEC’s findings, Green engaged in improper professional conduct by violating auditing standards established by the Public Company Accounting Oversight Board (PCAOB). He failed to exercise due professional care and fulfill his responsibilities as the engagement quality review partner when he provided his concurring approval to release an audit report, and when he failed to review and assess the audit team’s subsequent analysis of omitted procedures after the audit report release date. Details regarding the SEC’s order can be found here.
    (Published May/June 2019)

    LEV NAGDIMOV, Scarsdale, N.Y., was disciplined under the provisions of NYSSCPA bylaws Article XII–Professional Conduct and Disciplinary Proceedings, Section 5. Automatic Discipline. Nagdimov’s NYSSCPA membership was terminated, effective Oct.12, 2018, in connection with the disciplinary action taken by the Securities and Exchange Commission (SEC). Through an “Offer of Settlement,” in which he neither admitted nor denied the findings, the SEC denied Nagdimov the privilege of appearing or practicing before the SEC as an accountant, with the right to apply for reinstatement after five years from the effective date of the SEC’s order. This action is based on the SEC’s “Order Instituting Public Administrative Proceedings Pursuant to Section 4C of the Securities Exchange Act of 1934 and Rule 102(e) of the Commission’s Rules of Practice, Making Findings, and Imposing Remedial Sanctions.” Based on the SEC’s findings, Nagdimov engaged in improper professional conduct by violating auditing standards established by the Public Company Accounting Oversight Board (PCAOB). He directed the audit team to predate their incomplete work papers and audit programs, and he failed to exercise due professional care and to properly supervise the audit and the work of audit team members. Details regarding the SEC’s order can be found here.
    (Published May/June 2019)


    THOMAS JONES, East Islip, N.Y., was suspended from membership for two years, effective Oct. 9, 2018, as a result of an investigation alleging a potential disciplinary matter with respect to his performance of professional services on the audit of the financial statements of an employee benefit plan as of and for the year ended Dec. 31, 2013. Based on information from the Department of Labor’s E-fast website, along with a review of the financial statements, certain workpapers and other relevant documents, there appeared to be prima facie evidence of violations of Rule 201–General Standards, A. Professional Competence; Rule 202–Compliance with Standards; Rule 203–Accounting Principles; and Rule 501, Interpretation 501-5–Failure to Follow Requirements of Governmental Bodies, Commissions, or Other Regulatory Agencies, of the NYSSCPA’s Code of Professional Conduct. Without admitting or denying the alleged violations, Jones agreed to forgo any further investigation of the matter, and waived his rights to a hearing.  

    In accordance with the directives as outlined in the settlement agreement, Jones agrees to complete 38.5 hours of specified CPE within 12 months of the effective date of the agreement. He agrees to hire an outside party to perform a preissuance review of the reports, financial statements and working papers on two audits performed by him for one year from the date a reviewer has been approved or until completion of the CPE. The reviewer will report quarterly on his progress in complying with the agreement. Six months after completion of the preissuance reviews, he must submit a list of the highest level of engagements that he performed in the six-month period following the date he completed the preissuance reviews. One engagement will be selected for review.

    Jones will be required to provide an attestation immediately, then every six months for a period of three years, that he is no longer performing employee benefit plans audits. In the event Jones returns to performing such work, he will be required to complete 38.5 hours of CPE in the area of employee benefit plans. He agrees to hire an outside party to perform a preissuance review of the reports, financial statements and working papers on all employee benefit plan audits performed by him for one year from the date the reviewer has been approved. The reviewer will report quarterly on his progress in complying with the agreement. Six months after completion of the CPE, he must submit a list of the highest level of engagements that he performed in the six-month period following the date he completed the preissuance reviews. One engagement will be selected for review. Thirty days after returning to such work, he agrees to provide evidence that his firm has submitted an application to join the AICPA Employee Benefit Plan Audit Quality Center. (Published December 2018)


    CHRISTOPHER J. CHALAVOUTIS, Carle Place, N.Y., was expelled from membership, effective Aug. 29, 2018, under the provisions of NYSSCPA bylaws Article XII–Professional Conduct and Disciplinary Proceedings, Section 5. Automatic Discipline. The action was based on a final judgment of conviction in the case of the United States of America v. Christopher Chalavoutis, in which Chalavoutis pleaded guilty to violating Title 18 U.S.C. Section 1956(a),(b),(h); 1957(d)(1)—Conspiracy to Commit Money Laundering, which is a crime punishable by imprisonment for more than one year. (Published December 2018)

    ROBERT K. STEWART, Blue Point, N.Y., was expelled from membership, effective May 16, 2018, under the provisions of NYSSCPA bylaws Article XII–Professional Conduct and Disciplinary Proceedings, Section 5. Automatic Discipline. The action was based on the Securities and Exchange Commission’s (SEC) “Order of Suspension Pursuant to Rule 102(e)(2) of the Commission’s Rules of Practice.” Further details regarding the SEC’s order can be found here. As stated in the order, a judgment of conviction was entered in the United States District Court for the Southern District of New York, where Stewart was found guilty of one count of conspiracy to commit securities fraud and fraud in connection with a tender offer, a felony. (Published August/September 2018)


    SILFORD M. WARREN, Rosedale, N.Y., was expelled from membership, effective Jan. 9, 2018, under the provisions of NYSSCPA bylaws Article XII–Professional Conduct and Disciplinary Proceedings, Section 5. Automatic Discipline, and Article XII, Section 3. Impairment of License to Practice Public Accounting, in connection with disciplinary action taken by the New York State Education Department, Board of Regents. Warren submitted an application for permission to surrender his license to practice as a certified public accountant in the state of New York (Calendar No. 28910). The Board of Regents granted the request by vote on Oct. 17, 2017. In said application, Warren admitted guilt to one specification of professional misconduct, charging him with being convicted of committing an act constituting a crime under federal law (Willful Failure to Collect or Pay Over Tax, a felony), in violation of 26 U.S.C. Section 7202. (Published June/July 2018)

    Anderson M. Clarke, Brooklyn, N.Y., entered into a settlement agreement under the Joint Ethics Enforcement Program as a result of an investigation alleging a potential disciplinary matter with respect to his performance of professional services on the audit of the financial statements of a not-for-profit. In reviewing publicly available information, as well as relevant documents provided by Clarke, there appeared to be evidence of violations of the following rules of the Code of Professional Conduct: Rule 202–Compliance with Standards; Rule 203–Accounting Principles; and Rule 501, Interpretation 501-5–Failure to Follow Requirements of Governmental Bodies, Commissions, or Other Regulatory Agencies. Without admitting or denying the alleged violations, Clarke agreed to forgo any further investigation of the matter, waived his rights to a hearing and agreed to his suspension from membership in the NYSSCPA for a period of two years, effective Sept. 11, 2017.

    In accordance with the directives outlined in the settlement agreement, Clarke agrees to immediately comply with professional standards applicable to the professional services he performs, and provide an attestation immediately, then every six months for three years, that he is no longer performing audit engagements. If he returns to performing such work, he agrees to complete 33.5 hours of specified CPE prior to accepting such work. He will be required to provide evidence of such completion. Clarke agrees to hire an outside party to perform preissuance reviews of the reports, financial statements and working papers on all audits performed by him for one year from the date a reviewer has been approved. The reviewer will report quarterly on his progress in complying with the agreement. Six months after completion of the preissuance reviews, he must submit a list of the audits, reviews and compilations with note disclosures that he performed in the period between the date of completion of the preissuance reviews and the end of the six-month period following completion of the preissuance reviews. One engagement will be selected for review.

    Thirty days after acceptance of an engagement subject to Government Auditing Standards and/or OMB Circular A-133/Uniform Guidance, he must provide evidence that his firm has submitted an application to join the AICPA Government Audit Quality Center. In addition, Clarke agrees to schedule a peer review of his firm’s system of quality control within 60 days of acceptance of an engagement subject to peer review. Clarke will be prohibited from serving on any ethics or peer review committees of the NYSSCPA, performing peer reviews in any capacity, or teaching CPE in the areas of not-for-profit accounting and auditing, as well as Government Auditing Standards and/or OMB Circular A-133/Uniform Guidance, until all directives in the settlement agreement have been met. (Published January/February 2018)


    Jeffrey R. Pearlman, New City, N.Y., was expelled from membership, effective May 31, 2017, as a result of acceptance of a guilty plea by the Joint Trial Board, in lieu of a disciplinary hearing. Pearlman pleaded guilty to violating NYSSCPA bylaws Article XII—Professional Conduct and Disciplinary Proceedings, Section 12. Failure to Cooperate or Comply. Pearlman failed to cooperate with the Ethics Charging Authority in its investigation of his professional conduct by not responding to interrogatories and the request for documents. (Published November/December 2017).


    Domenick F. Consolo, Yorktown Heights, N.Y., was expelled from membership, effective Feb.13, 2017, under the automatic disciplinary provisions of NYSSCPA bylaws Article XII–Professional Conduct and Disciplinary Proceedings, Section 5. Automatic Discipline, in connection with action taken by the Securities and Exchange Commission (SEC). Specifically, through an “Offer of Settlement,” and without admitting or denying the charges, the SEC denied Consolo the privilege of appearing or practicing before the SEC as an accountant. The decision was based on the SEC’s findings that Consolo, as the audit partner, issued audit reports for fiscal years ending Dec. 31, 2009, through Dec. 31, 2014, stating that an incorporated municipality and a local development corporation’s financial statements were presented fairly, in all material respects, in conformity with generally accepted accounting principles (GAAP), and that the audits were performed in accordance with generally accepted auditing standards (GAAS). These statements were false in that the financial statements were not fairly presented, in all material respects, in conformity with GAAP, and the audits were not performed in accordance with GAAS. (Published September/October 2017).


    Md Hyder Alam, Jamaica, N.Y., was expelled from membership, effective May 15, 2017, under the provisions of NYSSCPA bylaws Article XII–Professional Conduct and Disciplinary Proceedings, Section 5. Automatic Discipline, and Article XII, Section 3. Impairment of License to Practice Public Accounting, in connection with disciplinary action taken by the New York State Education Department, Board of Regents. Alam submitted an application for permission to surrender his license to practice as a certified public accountant in the state of New York (Calendar No. 28039). The Board of Regents granted the request by vote on March 13, 2017. In said application, Alam admitted guilt to one specification of professional misconduct charging him with being convicted of committing an act constituting a crime under New York state law (Attempted Grand Larceny in the Fourth Degree, a class A misdemeanor). (Published September/October 2017).


    Lawrence J. Herzing, Brewster, N.Y., was expelled from membership, effective May 15, 2017, under the automatic disciplinary provisions of NYSSCPA bylaws Article XII–Professional Conduct and Disciplinary Proceedings, Section 5. Automatic Discipline, and Article XII, Section 3. Impairment of License to Practice Public Accounting, based on his application for permission to surrender his license to practice as a certified public accountant in the state of New York (Calendar No. 29126), which was approved by vote of the Board of Regents on Sept. 13, 2016. In such application, Herzing did not contest two specifications of professional misconduct in violation of Section 6509(5)(a)(ii) of the New York State Education Law, charging him with being convicted of an act constituting a crime under federal law (Fraud by Wire, Radio or Television, a felony), in violation of 18 U.S.C. Section 1343, and Section 6509(5)(a)(i) (Assault in the Second Degree, a felony), to which he entered a guilty plea. (Published September/October 2017).


    George T. Rhein, of Lake Grove, N.Y., had his membership in the NYSSCPA terminated, effective July 7, 2016 as a result of a decision by a hearing panel of the Joint Trial Board. Rhein was found guilty of violating NYSSCPA bylaws Article XII–Professional Conduct and Disciplinary Proceedings, Section 12. Failure to Cooperate, in that he failed to cooperate with the Ethics Charging Authority in its investigation of his professional conduct by not responding to interrogatories and the request for documents.  (Published ­­­­­­­­­­­­­­­­­­­­­­November/December 2016)


    Reid A. Hackney, of San Antonio, TX, had his membership in the NYSSCPA terminated, effective August 31, 2016, under the provisions of Article XII – Professional Conduct and Disciplinary Proceedings, Section 5. Automatic Discipline, as a result of disciplinary action taken by the Securities and Exchange Commission’s (SEC). Hackney submitted an Offer of Settlement, which the SEC accepted. Specifically, the SEC denied Hackney the privilege of appearing or practicing before the SEC as an accountant. He was prohibited from acting as an officer or director of any issuer that has a class of securities registered to Section 12 of the Securities Exchange Act, for a period of five years. This decision was based on the SEC’s finding that Hackney breached his duty to shareholders by engaging in insider trading of two entities in advance of public announcements, on the basis of material nonpublic information obtained from his employer. Hackney was ordered to pay disgorgement of $48,050, prejudgment interest thereon of $4,670 and a civil money penalty of $48,050, for a total of $100,770 to the SEC for transfer to the general fund of the Unites States Treasury. (Published November/December 2016)


    Martin Leventhal,Glen Cove, N.Y., was expelled from membership in the NYSSCPA effective Jan. 2, 2016, as a result of a decision by a hearing panel of the Joint Trial Board. Leventhal was found guilty of violating NYSSCPA bylaws Article XII–Professional Conduct and Disciplinary Proceedings, Section 12. Failure to Cooper- ate, by failing to cooperate with the Ethics Charging Authority in its investigation of his professional conduct by not complying with the directives of a letter of required corrective action. (Published July/August 2016)


    Mara Citrin, East Meadow, N.Y., was expelled from membership in the NYSSCPA, effective June 7, 2016, as a result of a decision by a hearing panel of the Joint Trial Board. Citrin was found guilty of violating NYSSCPA bylaws Article XII–Professional Conduct and Disciplinary Proceedings, Section 12. Failure to Cooper- ate, by failing to cooperate with the Ethics Charging Authority in its investigation of her professional conduct by not responding to interrogatories and request for documents.  (Published July/August 2016)


    Marc Weiselthier, Plainville, N.Y., was expelled from membership in the NYSSCPA, effective July 19, 2016, under Society bylaws Article XII–Professional Conduct and Disciplinary Proceedings, Section 2(a). Criminal Conviction of Member, as a result of a final judgment of conviction for a crime punishable by imprisonment for more than one year. Wieselthier pleaded guilty to conspiracy to commit bank fraud, in violation of Title 18, U.S.C. Section 1349, in the United States District Court for the Southern District of New York, in the case of the United States vs. Marc Wieselthier. Wieselthier was sentenced to 27 months in a correctional facility. (Published July/August 2016)


    Paul J. Konigsberg, of Greenwich, Conn., was automatically expelled from membership in the NYSSCPA, under Society bylaws Article XII.2–Criminal Conviction of Member, for crimes punishable by imprisonment for more than one year, effective November 24, 2015. A final judgment of conviction was entered in the United States District Court for the Southern District of New York in the case of the United States of America vs. Paul J. Konigsberg. Konigsberg pleaded guilty to violating Title 18, U.S.C. Section 371, Conspiracy to falsify books and records of a broker-dealer; falsify books and records of an investment adviser; and obstruct and impede the due administration of the IRS; and Title 15, U.S.C. Sections 78q(a) and 77ff; 17 CFR 240.17a-3, Falsifying books and records of a broker-dealer and 80b-4 and 80b-17; 17 CFR 275.204-2, Falsifying books and records of an investment adviser. (Published March/April 2016)



    George J. Silverman, of New City, N.Y., was expelled from membership in the NYSSCPA, effective June 19, 2015, as a result of a decision by a hearing panel of the Joint Trial Board. Silverman was found guilty of violating NYSSCPA bylaws Article XII.12, for noncompliance with the directives issued to him by the Professional Ethics Committee in a letter of required corrective action. (Published August 2015)


    Richard B. Davis, of Freehold, N.J., was automatically expelled from membership in the NYSSCPA, effective July 1, 2015, under NYSSCPA bylaws Article XII.3—Impairment of License to Practice Public Accounting, based upon his application for permission to surrender his license to practice as a certified public accountant in the State of New York (Calendar No. 27847), which was approved by a vote of the Board of Regents on Dec. 16, 2014. In such application, Davis admitted guilt to one specification of professional misconduct in violation of 6509(5)(a)(ii) of the New York State Education Law, charging him with being convicted of committing an act constituting a crime under federal law (Knowingly and Willfully Falsifying Material Facts to Obtain Penalty Abatements, a felony, in violation of Title 18 U.S.C. Sections 1001 and 1002). (Published August 2015)


    Dennis L. Duban, of Los Angeles, Calif., was automatically expelled from membership in the NYSSCPA, effective July 1, 2015, under NYSSCPA bylaws Article XII.3—Impairment of License to Practice Public Accounting, based upon his application for permission to surrender his license (Calendar No. 27798), which was approved by a vote of the Board of Regents on Dec. 16, 2014. In such application, Duban did not contest the charge of one specification of professional misconduct in violation of 6509(5)(a)(ii) of the New York State Education Law, charging him with being convicted of committing an act constituting a crime under federal law [Conspiracy to Defraud, a felony, in violation of Title 18 U.S.C. Section 371, and Aiding the Preparation of a False Tax Return, a felony, in violation of Title 26 U.S.C. Section 7206(2)]. (Published August 2015)


    Ilene S. Engelberg, of Hollywood, Fla., was automatically expelled from membership in the NYSSCPA, effective July 1, 2015, under NYSSCPA bylaws Article XII.3—Impairment of License to Practice Public Accounting, based upon her application for permission to surrender her license (Calendar No. 27729), which was approved by a vote of the Board of Regents on Dec. 16, 2014. In such application, Engelberg admitted guilt to one specification of professional misconduct in violation of 6509(5)(a)(i) of the New York State Education Law, charging her with being convicted of committing an act constituting a crime under New York State law (Criminal Facilitation in the Fourth Degree, a class A misdemeanor). (Published August 2015)


    Joseph Troche, of New York, N.Y., was automatically expelled from membership in the NYSSCPA, effective July 2, 2015, under NYSSCPA bylaws Article XII.5—Automatic Discipline, in connection with the disciplinary action taken by the Public Company Accounting Oversight Board—PCAOB File No. 105-2014-007, Notice of Finality of Initial Decision, March 6, 2015. Pursuant to Sections 105(c)(4) and 105(c)(5) of the Sarbanes-Oxley Act and PCAOB Rule 5300(a), Troche was censured, his registration with the PCAOB was permanently revoked and he was ordered to pay a civil money penalty of $5,000. Specifically, he failed to timely file annual reports for 2013 and 2014, and failed to pay annual fees for 2012, 2013 and 2014. (Published August 2015)


    Douglas S. Wood, of Malone, N.Y., was expelled from membership in the NYSSCPA, effective Jan. 14, 2015, as a result of a decision by a hearing panel of the Joint Trial Board. Wood was found guilty of violating NYSSCPA bylaws Article XII.12, for failing to cooperate with the Professional Ethics Committee, in that he was negligent in complying with the educational and remedial or corrective action, as directed in a letter of required action. (Published July 2015)


    John B. Renda, of Buffalo, N.Y., entered into a settlement agreement, in lieu of a full investigation. Without admitting any misconduct of alleged violations of the NYSSCPA Code of Professional Conduct, Renda was expelled from membership in the Society, effective May 4, 2015, under the Joint Ethics Enforcement Program as a result of the following violations: Rule 201–General Standards, A–Professional Competence (Renda lacked the professional competence to complete the engagement in accordance with professional standards); Rule 202–Compliance with Standards (the auditor’s report on supplementary information did not comply with professional standards); Rule 203–Accounting Principles (1) the financial statements were inappropriately prepared in accordance with a reporting model applicable to nonprofit entities, though the entity is governmental in nature and is subject to the accounting and reporting standards promulgated by the GASB. In addition, the auditor failed to perform and report on the audit in accordance with Government Auditing Standards, as required by the New York State Office of the State Comptroller; 2) the financial statements omitted the required disclosures); and Rule 501–Acts Discreditable (a member shall not commit an act discreditable to the profession). (Published July 2015)


    Jack Egan, of New Rochelle, N.Y., was expelled from membership in the NYSSCPA effective Jan. 14, 2015, under the automatic provisions of the Society’s bylaws in connection with the disciplinary action taken by the Securities and Exchange Commission (SEC). Specifically, the SEC suspended Egan from appearing or practicing before the Commission as an accountant. This decision was based on the SEC’s allegations that Egan knew or was reckless in not knowing that recognition of fraudulent revenue did not comply with Generally Accepted Accounting Principles in connection with a “Company’s” financial statements, and that, nevertheless, Egan signed the Company’s public filings and included the revenue in the Company’s financial statements for the fourth quarter and fiscal year ended Oct. 28, 2007; and for certifying the Company’s annual reports on Forms 10-K for its fiscal years ended 2007 and 2008, when he knew or was reckless in not knowing that the financial statements were materially false and misleading.(Published February 2015)

    James H. David Jr., of Bethpage, N.Y., was disciplined under the provisions of Article XII.15 of the Society’s bylaws. Effective Oct. 3, 2014, David’s membership was terminated as a result of the Securities and Exchange Commission’s (SEC) disciplinary action. Specifically, the SEC denied David the privilege of appearing or practicing before the Commission as an accountant for 10 years. This decision was based on the SEC’s findings that David, the CFO of a company, engaged in improper professional conduct by: 1) permitting the making of materially false and misleading entries in the financial statements; 2) failing to correct the entity’s financial statements that were materially false and misleading; 3) signing the SEC filings which contained false and misleading information. David stated affirmatively that the financial statements were presented in conformity with generally accepted accounting principles; however the financial statements contained material departures from generally accepted accounting principles for improper revenue recognition. David was also barred from serving as an officer or director of any public company and was ordered to pay $641,620 in disgorgement for gains from his sales of stock while participating in the fraud, plus prejudgment interest thereon, and a $200,000 civil money penalty. David neither admitted nor denied the above specified charges. (Published November 2014)

    Ivan M. Brodzansky, of Garden City, N.Y., was expelled from membership in the NYSSCPA, effective May 14, 2014, as a result of a decision by a hearing panel of the Joint Trial Board. Brodzansky was found guilty of violating NYSSCPA bylaw Article XII.12 for failing to cooperate with the Professional Ethics Committee in an investigation of his alleged unprofessional conduct. (Published November 2014)

    Mark Mycio, of Old Bethpage, N.Y., was automatically disciplined under the provisions of Article XII.5 of the Society’s bylaws. Effective March 18, 2014, Mycio’s membership was terminated as a result of the Securities and Exchange Commission’s (SEC) disciplinary action. The SEC denied Mycio the privilege of appearing or practicing before the Commission as an accountant, based on their findings that he engaged in improper professional conduct in connection with 1) the audit of the 2010 year-end financial statements of a “company” and for violating Section 10A(b)(1) in connection with that audit, and 2) with respect to the audit of the 2011 year-end financial statements of a second “company.” (Published August 2014)

    Steven J. Sherb, of New York, N.Y., was automatically disciplined under the provisions of Article XII.5 of the Society’s bylaws. Effective March 18, 2014, Sherb’s membership was terminated as a result of the Securities and Exchange Commission’s (SEC) disciplinary action. The SEC denied Sherb the privilege of appearing or practicing before the Commission as an accountant, based on their findings that he engaged in improper professional conduct in connection with 1) the audit of the 2007 year-end financial statements of a “company”; and 2) for engaging in improper professional conduct with respect to some or all of the financial statements of a second “company” for the years ended Aug. 31, 2008 and 2009, a four-month transition period ended Dec. 31, 2009, and the years ended Dec. 31, 2010 and 2011. (Published August 2014)

    Christopher A. Valleau, of Boca Raton, Fla., was automatically disciplined under the provisions of Article XII.5 of the Society’s bylaws. Effective March 18, 2014, Valleau’s membership was terminated as a result of the Securities and Exchange Commission’s (SEC) disciplinary action. The SEC denied Valleau the privilege of appearing or practicing before the Commission as an accountant, based on their findings that he engaged in improper professional conduct in connection with 1) the audit of the 2007 year-end financial statements of a “company”; 2) the audit of the 2010 year-end financial statements of a second “company”; and 3) with respect to some or all of the audits of the financial statements of a third “company” for the years ended Aug. 31, 2008 and 2009, a four-month transition period ended Dec. 31, 2009, and the years ended Dec. 31, 2010 and 2011. (Published August 2014)